On January 2, 2016, Rafa Company purchased a franchise with a useful life of 10 years for $50,000. An additional franchise fee of 3% of franchise operating revenues also must be paid each year to the franchisor. Revenues during 2016 totaled $400,000. In its December 31, 2016, balance sheet, what net amount should Rafa report as an intangible asset-franchise

$45,000

Explanation:

Calculation to determine the net amount should Rafa report as an intangible asset-franchise

Acquisition Cost P $50,000

Less: Franchise Amortization $5,000

(P$50,000/10)

Intangible asset-franchise - December 31, 2016 P$45,000

($50,000-$5,000)

Therefore the net amount should Rafa report as an intangible asset-franchise is $45,000

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

yes the correct answer was

b.the increased supply will create a surplus.